Here’s a great illustration that was written mainly for Herbalife, but it applies to Amway and most other MLMs almost perfectly:

Here’s the Spanish version:

Amway has 2 major problems, as do most MLMs:

The products are overpriced, which makes them almost impossible to sell to customers and results in Amway being an illegal pyramid, according to the FTC and SEC websites and previous court decisions, and

The Tool Scam is hidden profit for the top level distributors only, and the vast majority of distributors operate at a net loss as a result. This is RICO fraud.

This blog is designed to educate others and provide an opportunity to take action to shut down the Amway Tool Scam (ATS, defined in the Glossary) and illegal pyramid (lack of retail sales), and most MLMs are designed to mimic the Amway “business,” so this information regarding Amway is probably applicable to most other MLMs as well. The information is for anybody, including:

1. Anybody thinking about becoming an IBO (independent Business Owner, aka distributor) to prevent you from being ripped off, or

2. Former IBOs who have already been ripped off, or

3. Anybody else on the World Wide Web who is curious.

The ATS is in direct violation of FTC rules, Section 5 (http://itlaw.wikia.com/wiki/Section_5_of_the_FTC_Act), which charges the FTC with stopping “Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful.” This blog includes my opinions, facts, logic, and documentation that substantiate the FTC Section 5 rules regarding the prohibition of fraudulent, unfair, and deceptive ATS practices, which consists of 16 years experience as an Amway/Quixtar IBO, research/analysis of the ATS since 2005 specifically and MLM in general, and the highlights of that effort incorporate the primary sources/references found here.

Before proceeding, be sure to read and understand the Legal Notice found here, as I won an important court decision against Amway, with some minor constraints: https://stoptheamwaytoolscam.wordpress.com/about/, particularly the pdf link, items 5-11.